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Pound Sterling rose as an initial reaction to indications that the Bank of England will maintain a cautious approach to cutting interest rates.
The Bank's Monetary Policy Committee voted 8-1 to drop Bank Rate 25 basis points to 4.75%, as per expectations.
Of relevance to the foreign exchange market is the Bank's plans for future rate cuts, and the signal we received on Thursday is that December would be too soon for a follow-up cut.
"Based on the evolving evidence, a gradual approach to removing policy restraint remains appropriate," said the Bank in a statement.
Caution was the watchword, with the Bank judging last week's budget will boost inflation by 0.50 percentage points relative to previous forecasts and raise GDP growth by 0.75pp.
The heightened upside risks to inflation would preclude any acceleration of the easing cycle, and suggests the MPC will be content to pursue a quarterly pace of cuts.
This can ensure the Pound retains support from the UK's relatively elevated interest rate settings, particularly relative to the Eurozone, where the European Central Bank looks set to cut rates further.
The Pound to Euro exchange rate rose 0.16% in the 15-minute window following the announcement, reaching 1.2011. The Pound to Dollar exchange rate rose 0.20%, hitting 1.2931.
To be sure, the FX market remains preoccupied with events elsewhere, with Sterling having shown a sizeable reaction to the U.S. presidential election outcome and news that Germany's government has effectively collapsed.
Given the external uncertainties posed by Donald Trump's new administration and political uncertainty in Europe's largest economy, the Bank will be happy with as mild a reaction as possible.
Now is not the time to rock the boat.
An original version of this article can be viewed at Pound Sterling Live